The Team - Clearwell Capital

CASE STUDIES

Since 2012 Clearwell have been supporting SME property developers across the UK with a variety of efficient and flexible finance solutions.

Case Studies

Clearwell Capital provides mezzanine finance to property developers

View our latest case studies to discover previous developments we’ve supported and how we could help you.

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Jan 2022

Clearwell Capital Recruits Head of Credit

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Frequently asked question

All types of businesses need access to development resources, so we give you the option to decide how much you need to use.

What is Mezzanine Finance?

Mezzanine finance is a form of business funding that combines features of equity and loans (debt). While it's slightly more complex compared to other types of finance, it can be key to a business looking to secure the capital it needs

Wouldn't I Be Better Off Finding an Equity Investor?

Not necessarily. Bringing on an equity investor to help fund a scheme can lead to a host of issues for a property developer - one of the biggest being the lack of control. An equity investor will almost definitely want a say in how a development is handled, which can cause delays and sometimes conflict. Additionally, a private equity investment can be quite expensive when compared to mezzanine finance.

What Can Mezzanine Finance Be Used For?

In various situations where private equity might be ordinarily used, businesses can instead use mezzanine finance to fulfil their capital requirements. It's a source of finance that enables businesses to accomplish their goals for growth, whether it is building a large commercial premises or accomplishing an acquisition that can’t be completed with other forms of finance.

How Does Mezzanine Finance Compare to a Bank Loan?

Banks are highly regulated, which means they're limited to how much they can lend to companies. Banks also require stringent covenants. However, the use of mezzanine finance enables businesses to increase the total amount they can borrow and provides flexibility in structure and terms.

Is There a Risk When Taking Our Mezzanine Finance?

As with any type of financial product, there's a risk involved as you, the borrower, is 100% liable for the debt. It also doesn't matter whether you take out the finance in your company or personal name because you'll be required to provide a personal guarantee which makes you liable. This means if you default on the loan and your property is repossessed, the sale price could reduce to less than the loan amount, and it will be your responsibility to make the difference up.

What's The Biggest Benefit of Taking Out Mezzanine Finance?

The biggest benefit of mezzanine finance is that it reduces the amount of personal capital that's required to be invested in a standalone project. The lower level of personal capital that is required helps to enhance the return on capital. This means that a property developer can take on more development projects at the same time, which in turn can open up further revenue streams.

What is Senior Debt?

Debt finance covers the majority of commercial finance borrowing, such as secured business loans. Senior debt is money that a company is required to pay back first, and it carries a first charge over security. As it's ‘senior’, it takes priority over any other debts that have been loaned out.

How Do I Apply for Mezzanine Finance?

Applying for mezzanine finance is quick and easy with Clearwell Capital. Simply fill out this short online application form, and you'll receive a response within 24 hours. The initial screening is focused on your project's viability and is based on the financial information you provide us.

Need to finance your next development?

Clearwell have a dedicated team of industry professionals on hand to discuss your funding requirements.

Contact us today to see how Clearwell can fund your next development.

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0203 827 7697

0203 827 7697

Our Team

CASE STUDIES

Case Studies

OUR NEWS

Clearwell Capital Recruits Head of Credit

Frequently asked question

What is Mezzanine Finance?

Wouldn't I Be Better Off Finding an Equity Investor?

What Can Mezzanine Finance Be Used For?

How Does Mezzanine Finance Compare to a Bank Loan?

Is There a Risk When Taking Our Mezzanine Finance?

What's The Biggest Benefit of Taking Out Mezzanine Finance?

What is Senior Debt?

How Do I Apply for Mezzanine Finance?

Need to finance your next development?

REQUEST A CALLBACK

Company

Our Products

Stay up to date

Disclaimer

Our Team

CASE STUDIES

Case Studies

OUR NEWS

Clearwell Capital Recruits Head of Credit

Frequently asked question

What is Mezzanine Finance?

Wouldn't I Be Better Off Finding an Equity Investor?

What Can Mezzanine Finance Be Used For?

How Does Mezzanine Finance Compare to a Bank Loan?

Is There a Risk When Taking Our Mezzanine Finance?

What's The Biggest Benefit of Taking Out Mezzanine Finance?

What is Senior Debt?

How Do I Apply for Mezzanine Finance?

Need to finance your next development?

REQUEST A CALLBACK

Company

Our Products

Stay up to date

Disclaimer

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